Keller Williams Realty Atlanta – Peachtree Road
Real Estate Legal Tip
Presented By:
“Dry Closings”
When is a Closing “Closed”?
Many closings are forced to be “dry” or “in escrow”, usually because wired funds have not arrived from the new lender. Most lenders will approve a “dry” closing when the only condition is the receipt of their own wired funds by the closing attorney.
When a closing ends “in escrow”, always make sure of the following BEFORE you leave the closing table:
1. Closing attorney should have a “Total Escrow Agreement” signed by buyers and sellers to acknowledge that the closing is complete and can not be voided, rescinded or challenged by either party. The reasons for the escrow should be clearly stated, typically “Receipt of Lender’s Funds” and/or “Lender’s funding number”.
2. It is a good idea to extend the contract to the actual disbursement date, even if the closing papers have been signed by the original deadline.
3. Possession and occupancy dates should be reviewed and clarified, especially if the contract says “___ hours after closing”. In any event, the change of possession/occupancy date and time should be confirmed in writing by all parties.
4. Utilities: make sure that any cancellations and transfers are adjusted to match changes in possession or occupancy.
How to avoid these “dry” closings:
1. Do not schedule closings after 4:00 unless the wired funds have arrived and the lender will stay after 5:00 to give final approval
2. Do not rush your buyer or seller into a closing with last-minute papers and packages. Closing papers sent at the last minute do not guarantee loan funds (and are often inaccurate).
Presented by Leigh Clack, Attorney – Neel & Robinson Attorneys at Law, LLC
22 Lenox Pointe, Atlanta, GA 30324 lenox@neelandrobinson.com
404-705-3690 fax 404-705-3697
More Atlanta Real Estate Legal Tips:
Why Closing Attorneys Need Wired Funds for Closing
The Buyer Should Do Repairs Whenever Possible, Not The Seller
Watch Language in Short Sale Letters
Flood Insurance Is Not Always Available
Make Sure You Know Who Owns The Property!
Quit Claim Deeds & Owner Title Insurance
Choosing A Settlement Agent When Buying A Fannie Mae Property
KW Atlanta Legal Tip: Georgia 2010 Filing Deadlines Coming Soon!
Due Diligence When Buying a Condo, Townhome or In a Planned Community
Try To Avoid Credits & Allowances!
Special Issues with Buying/Selling Condominiums
First-Time Home Buyer’s Tax Credit – Don’t Wait Till The Last Minute!
Buying Property From The Bank: Tips For Buyers
Waiting Periods Required Under New Truth in Lending Law
Termite Letters – Still a Good Idea
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